Paula Daly had a £50,000 salary, a business and her own flat. She lost it all. Is the ‘squeezed middle’ on the brink of a homeless crisis?

Slideshow: Homelessness

Paula Daly, 48
Then: Consultant on government-sector projects, with her own fashion label and own flat; earned £50,000.
Now: Living on benefits in temporary accommodation

Photograph: Philipp Eberling

It could happen to any of us. One minute you’re chugging along, earning a good
salary, enjoying the odd holiday, wondering if you should paint the house.
And the next it all comes crashing down. With the economy stagnant,
unemployment hovering around 8%, and repossessions predicted to reach record
levels, homelessness is not just the preserve of the disadvantaged.

Paula Daly is the creative force behind the quirky fashion brand Mouse to
Minx. Even though the company is irrevocably stalled, she continues to tweet
gamely: “Still under the stairs… hoping for revival any day soon.” She views
the implosion of her life as “farcical satire… I cannot believe that at 48
I’ve lost everything I’ve ever fought for. I’m permanently in a state of
disbelief”.

She double-locks the door of her temporary flat (she’s been threatened by the
man upstairs) and pulls the chain across. “It’s a dump and I’ve